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#2
12-30-2003, 06:08 PM
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 Re: Tax refund too big "Russ" <russ[at]russ.net> wrote in message news:a586d8cf.0312291821.4886fd78[at]posting.google.com... - quote - > So we figured out we're getting around a $2200 refund this year.
The "quick and dirty" math works like this:> Obviously not a wise thing to do financially. How do we adjust to > come out closer to a $0 refund? One mistake we made is we both > claimed 0 and single this year. > My salary - 67200 AGI 2003 - 60000 > Wife - 28000 AGI 2003 - 25000 > Should we just claim the true thing - married and 1? We have no kids. Dollar Amount of 1 personal exemption Multiplied by YOUR marginal tax bracket Equals the tax effect of 1 exemption Divide your refund by this amount This tells you (APPROXIMATELY) how many more exemptions one of you can claim to get a zero refund. PLEASE NOTE - this calculation, like all tax planning calculations, uses certain assumptions - as your actual results vary from the assumptions used, so too will your end results. Also this is calculation works best when both taxpayers earn equal amounts, when one earns significantly more than the other, adjust the withholding of the higher paid taxpayer. Good luck, Gene E. Utterback, EA |
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#1
12-30-2003, 04:44 PM
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| Re: Tax refund too big Russ wrote: - quote - > So we figured out we're getting around a $2200 refund this year.
You should run through the IRS worksheet to determine your correct> Obviously not a wise thing to do financially. How do we adjust to > come out closer to a $0 refund? One mistake we made is we both > claimed 0 and single this year. > My salary - 67200 AGI 2003 - 60000 > Wife - 28000 AGI 2003 - 25000 > Should we just claim the true thing - married and 1? We have no kids. withholding. See www.irs.gov and pull up Form W-4, or use the withholding calculator on that site: http://www.irs.gov/individuals/artic...=96196,00.html Keep in mind that there was a change in tax rates mid-year, triggering a refund for 2003 that might not happen again in 2004, even at your current withholding level. -Tad |
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12-30-2003, 01:17 PM
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| Re: Tax refund too big In article <a586d8cf.0312291821.4886fd78[at]posting.google.com> , Russ <russ[at]russ.net> wrote: - quote - > So we figured out we're getting around a $2200 refund this year.
There really isn't anything too wrong about getting a $2200 tax> Obviously not a wise thing to do financially. How do we adjust to > come out closer to a $0 refund? One mistake we made is we both > claimed 0 and single this year. > Should we just claim the true thing - married and 1? We have no kids. refund. You are loaning the government money for free. Some folks actually look forward to this springtime check. For some, it is like a savings account that they can use to pay off Christmas bills. For others, it conveniently arrives about when property taxes are due. You have a few options. You can read the W-4 and fill it out exactly as it says. Another option is to ask your tax preparer what to do after they do your taxes. They can tell you exactly what to do to hit as close to zero as you can. Finally, you can compute your tax and refund using a number of different deduction levels, and pick the one that comes out the best. -john- -- ================================================== ================== John A. Weeks III 952-432-2708 john[at]johnweeks.com Newave Communications http://www.johnweeks.com ================================================== ================== |
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#-1
12-30-2003, 09:02 AM
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| Tax refund too big So we figured out we're getting around a $2200 refund this year. Obviously not a wise thing to do financially. How do we adjust to come out closer to a $0 refund? One mistake we made is we both claimed 0 and single this year. My salary - 67200 AGI 2003 - 60000 Wife - 28000 AGI 2003 - 25000 Should we just claim the true thing - married and 1? We have no kids. |
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| big, refund, tax |
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